Eureka Forbes Ltd.

Managing the selling effort

NITIN JAIN
140103116

EFLs sales approach

Unique direct sales approach (supplied by Electrolux)

More than 24 million cold calls, 2.4 million product demos & more
than 5,00,000 EuroCleans and Aquaguards sold by field sales force
annually

Corporate vision Embrace the customer as friend for life

EuroChamps Early 20s, from lower middle class homes,

extroverted, outgoing, enthusiastic, high achievement drive, well
spoken

Ads aimed at disposing prospects to welcome EuroChamps when

they came knocking

Issues

Declining sales volumes

Falling sales closure rates

Highest sales rep attrition rate

EuroChamps gave demos mechanically, ignoring customer

cues

Demo equipment damaged/not clean

Negligent response to customer objections

Poor performance across many territories

No time to coach/mentor sales force, managers too busy

managing quotas and sales volumes

High pressure job physically, psychologically

Bettering the Best

Previously: EuroChamps were rewarded merely on the
basis of sales volume
New System:

Points for successful completion of various stages of selling

process, compensation based on points
Daily targets also set, a chance for being recognized 10
times a day by superior

Aimed at:

Improving sales productivity and overall quality of sales

Making EuroChamps feel good about themselves
Improving morale and spirit of the sales team
Providing a diagnostic tool for HCRCs

Really better than the Best?

1. Feel-good factor by achieving smaller
targets, boosts morale and spirit
2. Better clarity about different selling
processes
3. Helps build better customer
relationships
1. Tedious paper work, new
4. Leads
to better system,
customer
computerized
add to it
engagement,
satisfaction
validating and tallying points for
every EuroChamp
2. Might end up rewarding nonperformers (no sales)
3. Incentives too small to motivate
4. Could shift focus to merely
accumulating points
5. Risk of inflating figures

Suggestions

EuroChamp will be in a dilemma whether to maximize

points/convert sale. A successful sale should carry
significantly higher points to differentiate sellers from
pretenders

Create and communicate clear organization-wide

ethical code of conduct taking a clear stance against
misquoting figures, reinforce the same constantly
through training

Penalize any instances of fabricated data heavily to set

an example (random field checks)

Managers should spend more time and efforts on

training Champs and closely monitor those working
under them. Better training and field learning gained
from managers can help them learn better how to close
a deal, better relations can help reduce attrition rate